short saleShort sales are selling choices made by homeowners in order to avoid a foreclosure.

Usually, they agree to sell the property for less than it’s worth or less than they owe simply to get out from under the loan.

In exchange, they make an agreement with the bank for the balance of the home loan and you get a fabulous house or building for less than if it were on a regular listing.

Motivated Sellers and Pricing

As a buyer, this could end up being a perfect situation. Not only are these homeowners usually prepared to move quickly but any improvements that have been made to the property will save you even more money.

When you’re talking to the seller, find out what their bottom price is so you can negotiate around that figure. If you’re dealing with a real estate agent who has found the property for you, this number will be probably be a part of their fact-gathering efforts.

Short Sales & Longer Documents

There is some additional paperwork that needs to be filled out because it is a short sale, but having a professional on hand can make this easy to do. It’s a small price to pay when you consider that you’re getting a house for less than the regular selling price would be.

Also, in these situations, you are agreeing to pay for any problems that are found in the home, especially once the deal has been signed. There is no recourse where you can go after the previous homeowner.

The contract will be written up as an as-is purchase and you can use the money you saved for repairs, remodels or renovations you wish to complete.

Short Trail to Short Sales

So you’re ready to buy a short sale? Let’s find the perfect house! An easy way to shorten this is to use online classifieds. Make sure you use a site like OpenOffer where you learn not only how to negotiate but the rest of the offer submission process as well.

This should help you avoid many beginner mistakes and help you be more successful your first time out. With assistance like this, you’ll find that you understand more of what you’re reading in general with real estate and short sales are nothing to be afraid of.

Here’s to finding a great house, setting up your perfect deal and paying a bargain price for the perfect family residence!

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This is filed under Short Sales.

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